Hyundai-Kia Signs MoU With Exide Energy For India EV Batteries

Hyundai-Kia Signs MoU With Exide Energy For India EV Batteries

South Korea-based auto companies Hyundai Motor Company (HMC) and Kia Corporation have announced a partnership with India’s Exide Energy Solutions Ltd to make electric vehicle batteries in the country. The companies have signed a Memorandum of Understanding (MoU) regarding manufacturing the EV batteries in India, reported news agency Reuters.

According to the report, the South Korean auto duo said in a statement that their partnership with Exide Energy aims to localise their EV battery production in India, specifically focusing on lithium-iron-phosphate (LFP) cells.

“This strategic move will position them as the pioneers in applying domestically produced batteries in their upcoming EV models in the Indian market,” the statement said.

In February, Hyundai Motor and Iveco Group recently signed a supply agreement for IVECO-badged all-electric light commercial vehicles. This agreement is undertaken to supply electric vehicles for Europe based on Hyundai’s Global e-LCV platform. Through this agreement, the new vehicle will join Iveco Group’s electric light commercial vehicle lineup, enhancing the group’s LCV portfolio alongside the IVECO Daily.

The Indian EV battery market will grow from $16.77 billion in 2023 to $27.70 billion by 2028, with a compound annual growth rate (CAGR) of 10.56 percent during the period spanning 2023 to 2028, according to GameChanger Law Advisors and Speciale Invest. The Indian EV market was valued at $3.21 billion in 2022 and is expected to grow to $113.99 billion by 2029 at a compound annual growth rate of 66.52 percent.

Indian Oil Corporation Limited and Panasonic Energy, a Panasonic Group Company, have signed a binding term sheet to draw a framework for the formation of a JV for manufacturing cylindrical lithium-ion cells in India in anticipation of expanding demand for batteries.